Home Insurance in Ontario

A standard Ontario homeowners policy is built around a few core protections, though the exact structure varies by insurer and property type.

Dwelling coverage pays to repair or rebuild your home's structure after a covered loss such as fire, wind or certain water damage. Getting this number right matters. Insuring for market value instead of rebuild cost is one of the more common gaps we see in existing policies.

Personal property coverage protects the contents of your home, including furniture, electronics, clothing and other belongings, up to your policy's limit. Higher-value items like jewellery, art or musical instruments often need to be scheduled separately, since standard limits are usually modest.

Personal liability coverage protects you financially if someone is injured on your property or you're found responsible for damage to someone else's property. Coverage amounts typically start around $1 million, though higher limits are available and worth discussing if you have significant assets to protect.

Additional living expenses (ALE) cover temporary accommodation, meals and related costs if your home becomes uninhabitable after a covered claim while repairs are underway.

Most Ontario policies also let you choose between replacement cost and actual cash value settlement. Replacement cost pays to rebuild or replace your property without a deduction for depreciation, while actual cash value factors in wear and age, which usually means a lower payout. Guaranteed replacement cost, where available, extends coverage beyond your stated payout.

Water damage is one of the most common and most misunderstood areas of home insurance in Ontario. Coverage isn't automatically included and varies significantly between insurers.

Sewer backup protection covers damage from water or sewage backing up through drains, sewers or sump pumps, which is a common issue in older neighbourhoods and areas with aging municipal infrastructure. It's usually an optional add-on rather than a standard inclusion.

Overland water coverage protects against damage from surface water entering your home, for example after heavy rain, rapid snowmelt or a nearby river or lake overflowing. This is a separate coverage from sewer backup, and increasingly relevant given more frequent severe weather events across Ontario.

Basement flooding can stem from either overland water or sewer backup depending on the cause, which is why it's worth confirming with a broker exactly which triggers your policy responds to. It's a distinction that's easy to miss when comparing quotes on price alone.

Because these coverages aren't standardized across the industry, this is one of the areas where working with a broker who compares multiple insurers tends to matter most. The right combination depends on your property's location, age and drainage history.

Homeowners insurance for detached and semi-detached houses covers the dwelling structure, detached structures like garages or sheds, personal property and liability.

Condo insurance works alongside your condo corporation's master policy, typically covering unit improvements, personal property, liability and the gap between what the building's policy covers and what you're responsible for.

Tenant and renters insurance covers your personal belongings and liability as a renter. The building itself is covered by your landlord's policy, but your possessions and legal liability generally aren't.

Rental property (landlord) insurance covers properties you own and rent out to others, including protection against loss of rental income and liability exposure specific to tenanted properties. This differs from a standard homeowners policy and from tenant insurance, so it's worth clarifying which applies to your situation.

Cottage and seasonal property insurance accounts for properties that sit vacant for part of the year, which can affect coverage terms, heating requirements and how claims involving vacancy periods are handled.

High-value home insurance is designed for properties or contents that exceed standard policy limits, often including higher liability protection and broader coverage for valuables.

Combining your home and auto insurance with the same insurer is one of the more straightforward ways to reduce your overall premium, and it also simplifies renewals and claims to a single point of contact.

That said, bundling isn't always the cheapest option for every situation. Occasionally splitting policies between two insurers works out better, depending on your driving history and property risk profile. A broker can compare both scenarios rather than defaulting to one.

Buying directly from a single insurer means seeing only that company's rates and coverage terms. As an independent, RIBO-licensed brokerage and IBAO member, BrokerUnion compares options across more than 50 Canadian insurance markets on your behalf, and our brokers can explain the coverage differences between insurers in plain terms, not just the price differences.

With service available in more than 25 languages across six Ontario offices, our brokers work with homeowners across a wide range of backgrounds and property types, from first-time buyers to landlords managing multiple properties.